Accounting is the process of recording financial transactions relating to a business. The accounting cycle incorporates summing up, analyzing, and reporting these exchanges to oversight offices, regulators , and tax collection authorities. The financial statements utilized in accounting are a brief rundown of financial transactions over an accounting period, summing up an organization’s operations, financial position, and incomes.
Accountants have to incorporate critical business information, implement and maintain relevant processes and controls, enable business decisions, and report everything to the stakeholders in an integrated way. They provide assurance and advisory services to organizations & small businesses alike to enhance confidence in the reported information.
Accounting experts at 911 Consultancy understand that the credibility and reliability of your information are essential. They do an expert analysis of the recent changes in standards and help you navigate your business through smooth as well as recessionary environments. As influential members of your business, they are ready with their experience to make a difference!
Does your organization have the right strategic partner to help you navigate finance hurdles while ensuring you can continue to meet the growing demands of your organization? Contact us today! 911 Consultancy is one of the leading accounting services for business firms in Dehradun.
Our experts recognize that business owners need a partner they can work with collaboratively to evaluate their processes. They are ready to deliver pragmatic solutions to help you address rising demands, existing inefficiencies, and impacts of technological advancements while ensuring the business remains in tune with its core activities.
We as a team target to provide the best accounting services in Dehradun. We outsource the accounting work of clients and get it done either at our premises or at client’s premises. We complete the accounting of the client keeping in view all taxes applicable to the firm ( TDS, GST).
- Budget Planning
For every business, budgeting is a key factor. Budget planning help business to develop strategies, save money and observing any expenses that exceed the budgeted amount. In order to make a budget for a business, a business needs certain previous records. This will only be possible if records are maintained through accounting because they form the basis for planning and budget makings.
- Banks and lenders
To get a loan from a financial institution, you need to provide a financial statement. To make a financial statement, you need to have a proper accounting system. Various books of record such as profit, expenses, assets and liabilities, tax paid need to be maintained. The financial institution will then scrutinize in detail in order to provide a loan to the organization
- Records Keeping
The organization needs to have a record of their transaction to run the business smoothly. To do so, accounting play a key role in keeping records. These records are collected, organized and then interpreted them to communicate to end users.
- Decision Making
Accounting in decision making plays a key role. For this business organization need a financial statement. A financial statement is made as a result of the accounting system. Executive management cannot make a sound decision if there is no proper record of accounting in business organization and hence it is impossible for them to achieve objectives.
Many stakeholders need financial information in the form of a financial statement. Example of stakeholder that need financial information are investors, creditors, government, debtors, customers and employees. The investor will move away if the organization is lack of financial records and accounts. They need this information to know about business progress.
- Reporting Business Profits
The main objective of a business is to make a profit. In order to ascertain whether a business is making a profit or not, must need to maintain accounting system regardless of size. This enables interested parties to make a decision on the growth of business output.
- Monitoring Cash Flow
Well prepare accounting systems helps in managing of working capital requirement and other cash requirements within an organization.
- Payment of Taxes
Proper accounting system ensures timely recording of Taxes which are to be paid within the time frame. This may includeTDS, GST, EPF, ESIC, Advance Tax. Timely payment of these Taxes helps business to the avoid interest and penalties.
- Help in filing a financial statement to Stock Exchanges and tax authorities
Listed companies required to submit a financial statement to stock exchanges. For both direct and indirect tax filing purposes, financial statement and other financial requirements must be provided to tax authorities. Such information can only be provided if proper accounting record is maintained within a business organization.
- Prevention & Detection of Fraud
In order to prevent and detect fraud, good internal control in place is required within the business organization. Good internal control can only place where a proper record of events is taken place. The only way to maintain and keep track of transaction effectively and efficiently is to implement accounting and accounting system.
- Planning and Forecasting
To expand a business, an organization need more finance to support this expansion. For this bookkeeper look at the financial statement which type of finance they need. At the end of the year, the business needs to distribute profit to investors.
Chief finance officer then considers how much to distribute to investors, how much debt to be paid off and how much reserve in the form of cash need to be maintained for expansion and any other future need.
Such planning and forecasting can only be achieved if proper accounting and accounting system are maintained in a business organization.
- Improved Payment Cycles
Another reason for preparing and keeping accounting and accounting systems within a business organization is to enhance the business payment cycle such as payable and receivable cycles.
Investors share on profit need to be determined, daily wages and monthly salaries need to be calculated and payment should be made to lenders on a timely basis. Payment cycle can only be improved if proper accounting system is implemented within a business organization.
- Credit building and reputation
Credit building and reputation are established by implementing and operating a sound accounting information system. It is believed that when there is an efficient accounting system in an organization, all another aspect of business operation is effectively managed.
As stakeholder make their decision on the basis of the financial statement, it must be clear and easy to understand. The investor does not take a risk on the incomplete and complex financial statement.
Any information such as profit before interest and tax, profit after tax, depreciation and amortization are some information that is vital information to stakeholders and shareholders.
These need to be accurate because any difference in these can make a huge difference. Therefore transparency is a key factor to represent this information which can only be achieved if all business transaction is recorded and maintain in the accounting system.